09-14-05 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 14, 2005 • The levy for the General Capital Improvement Fund represents Che DLRC recommendation plus 3.5% for inflation starting in 2007. • The General Fund levy is up by 8.54% ($2,048,298 vs. $1,887,218). The Finance Director then began a detailed review of General Fund revenues and expenditures. The proposed General Fund levy is $2,058,186. Highlights from General Fund revenues are as follows: No changes in Liquor license rates have been factored into the preliminary budget, only count changes have been included. Rate increases are discussed later in this memorandum. Impact =$3,750 Building permits and plan check fees have been calculated on a conservative basis once again. In 2005, we anticipate revenues above budgeted amounts. Redevelopment over the last four years has helped us generate record levels of building activity. However, our substantially developed status has resulted in revenues trending down from 2002/2003 highs. Therefore, staff recommends we continue to conservatively budget permit and plan fees in 2006 to recognize this trend and let any surplus dollars realized fund reserves to policy levels and/or transfer to the General Capital Improvement Fund. Impact = $0 Local Government Aid (LGA) was cut to zero in 2003 - 2005 as part of the State's Budget cuts. The cuC remains in place for 2006. Staff does not envision a scenario where we will ever recover these dollars. Impact = $0 The Market Value Homestead Credit has been reduced again for 2006. As has been stated previously, this is not State Aid, but rather a payment made by the State on behalf of lower valued homeowners to lower their property tax burden. It is really part of our levied property taxes. Therefore, the state is taking part of our tax levy to balance its budget Impact = ($102,219) The Low Income Housing Aid expired in 2003, this amount should not have been included in 2005 budgeC. Impact = ($13,917) 3